Inventory across the country in hot markets is getting quite low. This is causing a lot of buyers to get creative with their offers and they're buying strategies. This also might be looking at homes that are not on the market. How can you buy a house that's not for sale? You might be surprised to know this is not an uncommon practice. However, most buyers don't even know that it is an option. I will say that probably 9 out of 10 homeowners will decline an offer on their house unless they've been thinking about selling and here comes a buyer that's willing to purchase the home right away. This could be a home that you've had your eye on for some time or a dream home that you've passed by on a regular basis and would like to know more about. Sometimes homes will sit on the market for a while and if they don't sell they could be removed for several months or even several years. The homeowner may choose to rent out the house or choose a different option altogether.
There are options to buying a home that may not be listed for sale. Remember, the worst that they can say is "no". Most homeowners are flattered by the situation as it shows that they have a desirable home that someone would want to purchase. It's important to be informed and up-to-date on any legal aspects of buying a house. You can certainly buy a house with a real estate agent even if it's not listed as long as the homeowner is interested and willing to open negotiations. It's important to get a real estate agent or Realtor to represent you in this type of situation so that your negotiating strategies are still kept confidential and you have the advice and support of a real estate professional.
Surprisingly, a lot of buyers consider this is a great way to find a house they really love. For starters, send a letter to the home stating the intent on purchasing it. You can mention your qualifications and how you plan on buying the home. Mentioned that you will pay market value and ask if the homeowner is open to friendly conversation about it. Some homeowners may try to pull a fast one; if they think someone is interested, the seller may disregard your offer completely and instead listed themselves for a higher price. This could really backfire because there may not be that much interest in the home, especially at an inflated price.
Buyers and sellers will both have questions. Buyers will wonder if they're paying too much and sellers might worry that they're not getting enough for the house. This is a risk that both parties take when they facilitate and off-market deal. There's the risk that the seller could decline the offer and listed on the open market anyway, in which case they may choose to listed higher and the buyer may or may not be able to afford that price. The buyer also might not be aware of what they're getting. Most buyers should have their own home inspection conducted on any type of home regardless of whether it was listed on the open market or not. Specific wording in the contract should make it feasible for the buyer to perform a home inspection with the contingency of terminating the transaction should the inspection not be approved.
All in all, the worst a homeowner can say is no. My suggestion is to have a real estate agent on your side offering advice as to how to approach the situation, how to negotiate, and how to begin the family conversation with a potential homeowner.
If you've recently seen a home that you're interested in purchasing but it's not listed on the market, contact my office today. Our agents work throughout the Columbus Ohio area we'd be happy to offer tips and suggestions on putting in an offer on a home that's not for sale.
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